West Haven unsure how to pay old demolition bill

WEST HAVEN  The president of a company that tore down a Sawmill Road apartment complex three years ago agreed Tuesday to hold off on suing the city so officials could discuss how to pay the overdue demolition bill.

Rebecca Baker Erwin

Published
12:00 am EST, Wednesday, February 25, 2004

"But I cant wait forever," said James Newbury, president of Bestech Inc. "Weve been waiting patiently for three years."

The Ellington-based firm tore down the dilapidated Hilton Drive apartment complex as part of the Sawmill Road redevelopment project.

The city and company have been haggling for more than a year about how much the demolition actually cost.

Bestech puts the cost at $1.63 million; the city says the actual price is closer to $1.1 million.

Last month, an attorney for Bestech threatened to sue if the city didnt agree to pay the $1.63 million by Friday.

But Newbury said he would honor a request by Sawmill Road Redevelopment Agency attorney Mark Milano to delay legal action until the City Council could vote on the payment at its next meeting.

"As long as progress is being made, Id be happy to (delay a suit)," Newbury said.

Mayor H. Richard Borer Jr. said he wants to avoid going to court over this and would rather "split the difference" than pay legal fees.

"Theyve been very generous and patient," he said. "Their work has made the property more valuable. We could not have done it for less."

Milano discussed the potential lawsuit with the City Council in executive session Monday night. City Council Chairman Joseph Cullen said Milano would present a final dollar figure to the council at its March 8 meeting at 7 p.m. in City Hall.

Cullen said the council would discuss how to pay for the demolition bill at the meeting. He said the city could pay for such a bill out of the general fund, its rainy day fund or in next years budget.

Bestech originally was hired by Berkshire Development, a firm that the city hired to bring more businesses onto Sawmill Road.

Berkshire was supposed to pay for the demolition costs after it secured the property, but city officials wanted the crime-ridden apartments to come down sooner.

Borer signed an agreement with Bestech on Jan. 11, 2001, agreeing to pay the demolition costs if Berkshire Development could not develop the land.

Borer said he had the authority to sign the contract without council approval because it did not have a dollar figure attached to it at the time.

Bestech tore down the apartments, but the city dismissed the Springfield, Mass.-based Berkshire a year later after it could not develop the Sawmill Road parcel.